US Refineries Now Import Half of Venezuela's Oil Output, Senior Official Reveals

Venezuela is currently exporting about half of its oil production to the United States, a senior US official disclosed, arriving seven months after Washington abducted President Nicolas Maduro and installed an interim government in Caracas.

Addressing an industry event in Houston on Tuesday, Under Secretary of Energy Kyle Haustveit announced that more than 500,000 barrels per day (bpd) are flowing from Venezuela to the US out of a national output of approximately 1.25 million bpd. He explained that the shipments are heading to refineries specifically constructed for that distinct crude.

Venezuela maintains the world’s largest proven oil reserves, estimated at 303 billion barrels or roughly 17 percent of the global total, according to the US Energy Information Administration. Nevertheless, decades of underinvestment and sanctions previously reduced its output to about 1 percent of world supply. By the close of 2025, production stood near 1 million barrels per day, with roughly 135,000 barrels per day shipped to the US. Because Venezuelan oil is heavy, sour crude, US Gulf Coast refineries are ideally equipped to process it, rendering the renewed imports immediately advantageous to those plants.

Haustveit also highlighted that Washington is actively assisting in scaling up production in Venezuela, noting that the US supplies over 100,000 bpd of naphtha to be blended with the heavier crude. He characterized the arrangement as a "beautiful energy partnership" that generates real value for both trading partners.

Concurrently, Venezuelan officials speaking at the same event expressed ambitions to elevate output further. Jovanny Martinez, a vice president at state oil company PDVSA, stated that Venezuela’s crude output is projected to reach 1.245 million bpd by the end of August, accompanied by a 19.7 percent increase in exports this year. He added that fuel output has climbed 12.9 percent, boosting domestic fuel supplies by 5.4 percent. Martinez emphasized the necessity to improve, modernize, and expand the nation's refineries, while domestically developing required diluents for heavier grades.

The growth in Venezuela’s oil production follows statements from US President Donald Trump asserting that Washington would manage Venezuela and utilize its oil reserves. Following the removal of Maduro, President Trump stated that the money would be controlled by him to guarantee it benefits the citizens of both Venezuela and the United States. US Secretary of State Marco Rubio subsequently informed the US Congress that proceeds from Venezuelan oil sales would enter an oversight account, requiring Caracas to submit monthly budget requests while Washington dictates prohibited expenditures.

The Financial Times reported in July that the US has accumulated over $13bn in revenue from Venezuelan oil sales throughout the year. Addressing this report on July 27, President Trump maintained the actual figure was higher, though his administration offered minimal details regarding the disposition of the funds. In April, a State Department official informed Congress that approximately $3bn had been authorized for disbursement to Venezuela.

Meanwhile, the CouncilOn Foreign Relations criticized the administration's transparency, noting that while officials frame the export control as mutually beneficial, they have failed to publicly disclose total oil sold, revenue collected, or fund utilization. The think tank also raised concerns regarding the exclusion of Venezuela's opposition and civil society from future discussions with the interim government led by Maduro’s vice president, Decly Rodriguez. Without democratic roadmaps or accountability mechanisms, critics warn the US risks cementing a corrupt successor regime, despite the Venezuelan opposition—including Nobel peace laureate Maria Corina Machado—agreeing to a roadmap in May calling for political negotiations and presidential elections.